MBS Highway Housing Index, August 2026
The MBS Highway National Housing Index fell 5 points in August 2026 to 27, with the normal seasonal downturn exacerbated by the highest mortgage rates we’ve seen in more than a year.
National Data
In August, the MBS Highway National Housing Index dropped for the third month in row, shedding 5 points to hit 27. While that index level is consistent with weakening demand and flattish prices, it’s actually 3 points above its level from a year ago. As a reminder, a reading of 50 separates contraction (below 50) from expansion (above 50).
Both our Buyer Activity and Price Direction sub-indexes lost 5–6 points to arrive at 27. While it’s normal for our index to peak around April-May, there is little doubt that the US/Iran conflict — which has boosted oil prices, inflation and (by extension) mortgage rates — has crimped demand at a time when inventory levels are generally rising. That explains why, at the national level, home prices are basically flat.
Both our Buyer Activity and Price Direction sub-indexes lost 5–6 points to arrive at 27. While it’s normal for our index to peak around April-May, there is little doubt that the US/Iran conflict — which has boosted oil prices, inflation and (by extension) mortgage rates — has crimped demand at a time when inventory levels are generally rising. That explains why, at the national level, home prices are basically flat.
Regional Data
Buyer Activity dropped in six of seven regions, with the Mid-Atlantic (-16 to 30) and Midwest (-11 to 29) seeing the largest drops. The Southeast eked out a tiny gain (+1 to 28). Only the Northeast region (-5 to 54) remained above the 50 threshold. It it notable, however, that 5 of 7 regions have Buyer Activity levels above the same time last year.
Price direction was a similar story, with five of seven regions seeing declines. The Midwest saw the largest fall (-15 to 35), followed by the Mid-Atlantic (-14 to 46). The Southwest continues to be in a funk, with both the lowest Buyer Activity (20) and Price Direction (16) amongst the regional indexes.
Buyer Activity dropped in six of seven regions, with the Mid-Atlantic (-16 to 30) and Midwest (-11 to 29) seeing the largest drops. The Southeast eked out a tiny gain (+1 to 28). Only the Northeast region (-5 to 54) remained above the 50 threshold. It it notable, however, that 5 of 7 regions have Buyer Activity levels above the same time last year.
Price direction was a similar story, with five of seven regions seeing declines. The Midwest saw the largest fall (-15 to 35), followed by the Mid-Atlantic (-14 to 46). The Southwest continues to be in a funk, with both the lowest Buyer Activity (20) and Price Direction (16) amongst the regional indexes.
Question of the Month
We like to regularly check on the local supply/demand situation. So we asked our survey respondents: Would you consider your area a buyer’s market, a seller’s market or a balanced market?
Nationwide, 48% of respondents said that they were operating in a buyer’s market, with 80% of respondents in the Southwest and 67% in Southeast saying that buyers had the most negotiating leverage. In contrast, 69% of respondents in the Northeast said that they were still in a seller’s market. With active inventory down as much as 50% (relative to pre-pandemic) in some Northeastern states, that’s no surprise.
We like to regularly check on the local supply/demand situation. So we asked our survey respondents: Would you consider your area a buyer’s market, a seller’s market or a balanced market?
Nationwide, 48% of respondents said that they were operating in a buyer’s market, with 80% of respondents in the Southwest and 67% in Southeast saying that buyers had the most negotiating leverage. In contrast, 69% of respondents in the Northeast said that they were still in a seller’s market. With active inventory down as much as 50% (relative to pre-pandemic) in some Northeastern states, that’s no surprise.
Methodology
MBS Highway’s monthly Housing Index provides an accurate and real-time read on buyer activity and home price direction both nationally and regionally in the U.S. housing market. This survey of 30,000 mortgage and real estate professionals fills a crucial industry need for insights that reflect buyers’ immediate experiences, helping mortgage loan originators to better serve homebuyers.
The MBS Highway Housing Survey is comprised of two separate component indices: buyer activity and home price direction. Each month, respondents rank buyer activity as “active,” “steady,” or “slower,” and home price direction as “price increases,” “steady,” or “price reductions.” A national and regional index is calculated for each component index by applying the formula “[active + (steady/2)]” for buyer activity, and “[price increases + (steady/2)]” for home price direction. The score for each component index is then used to calculate the MBS Highway Housing Index by applying the formula "[(national buyer activity/2) + (national home price direction/2)].
Any number over 50 indicates expansion while a number below 50 indicates contraction. The MBS Highway Housing Index can range between 0 and 100.
Dan Habib, MBS Highway’s Chief Revenue Officer, explained, “There are a few reliable housing reports available in the market, most of which are delayed by two months. Because MBS Highway has a large base of mortgage and real estate clients, we felt we were in a unique position to capture real-time housing data from our subscribers, who are on the front lines of the housing market.”
MBS Highway’s monthly Housing Index provides an accurate and real-time read on buyer activity and home price direction both nationally and regionally in the U.S. housing market. This survey of 30,000 mortgage and real estate professionals fills a crucial industry need for insights that reflect buyers’ immediate experiences, helping mortgage loan originators to better serve homebuyers.
The MBS Highway Housing Survey is comprised of two separate component indices: buyer activity and home price direction. Each month, respondents rank buyer activity as “active,” “steady,” or “slower,” and home price direction as “price increases,” “steady,” or “price reductions.” A national and regional index is calculated for each component index by applying the formula “[active + (steady/2)]” for buyer activity, and “[price increases + (steady/2)]” for home price direction. The score for each component index is then used to calculate the MBS Highway Housing Index by applying the formula "[(national buyer activity/2) + (national home price direction/2)].
Any number over 50 indicates expansion while a number below 50 indicates contraction. The MBS Highway Housing Index can range between 0 and 100.
Dan Habib, MBS Highway’s Chief Revenue Officer, explained, “There are a few reliable housing reports available in the market, most of which are delayed by two months. Because MBS Highway has a large base of mortgage and real estate clients, we felt we were in a unique position to capture real-time housing data from our subscribers, who are on the front lines of the housing market.”